Letong Chem(002319)2022-03-30 16:00Financial Performance - The company's operating revenue for 2021 was ¥387,741,377.38, representing a 23.26% increase compared to ¥314,563,718.67 in 2020[20]. - The net profit attributable to shareholders for 2021 was -¥37,146,987.85, a decrease of 608.18% from ¥7,309,799.46 in 2020[20]. - The net cash flow from operating activities decreased by 42.00% to ¥16,005,627.67 in 2021 from ¥27,597,848.76 in 2020[20]. - The basic earnings per share for 2021 was -¥0.19, a decline of 575.00% from ¥0.04 in 2020[20]. - Total assets at the end of 2021 were ¥655,893,509.49, an increase of 4.69% from ¥626,524,542.55 at the end of 2020[20]. - The net assets attributable to shareholders decreased by 25.31% to ¥106,103,509.04 at the end of 2021 from ¥142,051,055.37 at the end of 2020[20]. - The company reported a weighted average return on equity of -29.94% in 2021, down from 5.18% in 2020[20]. - The net profit after deducting non-recurring gains and losses was -¥39,446,530.49 in 2021, a 29.13% increase in loss compared to -¥30,548,203.88 in 2020[20]. Revenue Breakdown - The ink manufacturing business generated revenue of ¥375,959,207.04, accounting for 96.96% of total revenue, with a year-on-year growth of 28.64%[48]. - The internet advertising marketing business reported revenue of ¥7,091,300.37, a significant decline of 58.73% year-on-year, with a net loss of -¥2,297,764.34, down 240.83%[46]. - The company's total revenue for the first quarter was ¥89,570,470.12, while the fourth quarter revenue was ¥96,615,026.76, showing a quarterly fluctuation[25]. Cost and Expenses - In 2021, the cost of raw materials amounted to ¥289,507,495.98, representing 89.95% of operating costs, an increase of 43.30% compared to ¥202,073,775.96 (84.86%) in 2020[55]. - The company's main business cost for internet marketing and advertising decreased by 56.40% to ¥4,925,599.38 in 2021 from ¥11,287,295.27 in 2020[56]. - The management expenses increased by 19.41% to ¥60,369,572.91 in 2021 from ¥50,554,656.80 in 2020[61]. Research and Development - Research and development expenses for 2021 were ¥9,874,844.05, a slight decrease of 1.05% from ¥9,979,238.68 in 2020[61]. - The proportion of R&D investment to operating revenue decreased from 3.17% in 2020 to 2.55% in 2021, a decline of 0.62%[65]. - The number of R&D personnel increased by 18.75% from 32 in 2020 to 38 in 2021[65]. - The R&D team focuses on developing new products such as PVC and composite water-based inks, with successful advancements in smoke packaging and UV products[41]. Market Challenges - The ink manufacturing sector faces challenges due to rising raw material costs and supply chain issues, impacting overall profitability[31]. - The internet advertising market is experiencing a slowdown in growth, influenced by reduced advertising budgets from various industries due to the pandemic[32]. - The overall industry outlook remains cautious, with the need for strategic adjustments to navigate economic uncertainties and industry challenges[31]. Environmental Compliance - The company reported a significant environmental compliance issue, with unaddressed losses reaching one-third of the total paid-in capital for the year 2019, which was rectified in February 2021[127]. - The company invested in upgrading its VOCs treatment facilities, adding a new zeolite rotary concentrator and catalytic combustion system with a design capacity of 100,000 m³/h to enhance emission control[131]. - The company established a real-time monitoring system for both air and water emissions to ensure compliance with environmental standards[132]. Corporate Governance - The governance structure of the company complies with relevant laws and regulations, ensuring the protection of shareholder rights and interests[89]. - The company actively engages with stakeholders, focusing on environmental protection and social responsibility while maintaining steady growth[88]. - The company has established a transparent and effective performance evaluation and incentive mechanism for its management team to attract and retain talent[88]. Shareholder Information - The total number of shareholders at the end of the reporting period was 10,581, an increase from 9,943 at the end of the previous month, representing a growth of approximately 6.4%[197]. - The largest shareholder, Shenzhen Dasing Asset Management Co., Ltd., holds 51,999,959 shares, accounting for 26.00% of total shares, with no changes reported during the period[198]. - The company has not proposed any cash dividend distribution or stock bonus for the reporting period, despite having positive distributable profits[120]. Future Outlook - The company plans to focus on developing and promoting new environmentally friendly ink products in 2022, aligning with national policies supporting sustainable development[79]. - The company aims to enhance its internet advertising marketing business by adjusting its market development strategy and expanding its customer base[80]. - The company has set a future outlook with a revenue target of 1.5 billion RMB for the next fiscal year, indicating a projected growth of 25%[104].